Banu Modern Rice Mill vs. ITO

Parties Involved

Facts Summary

The appeal by Banu Modern Rice Mill for the Assessment Year 2014-15 arises from an ex-parte order by the Commissioner of Income Tax (Appeals) dated 28-06-2024. The order involved an addition of Rs.18.99 Crores under Section 40A(3) of the Act. The assessee failed to appear during the set aside proceedings, leading to the confirmation of the assessment. The assessee appealed, arguing that the provisions may not apply as they deal in rice, an agricultural produce. The Tribunal accepted the arguments and restored the assessment back to the file of the Assessing Officer, with a cost of Rs.5,000/- to be deposited by the assessee.…

Legal Issues

• 1. Whether the provisions of Section 40A(3) apply to the assessee dealing in rice.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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